SEBI Strictures

Lets use this thread to record companies subjected toSEBI strictures, orders banning or debarring companies.

Its important that we quote the source of the news and provide the available links. Also if the company has made any clarifications in this regard by way of announcement at stock exchanges, we should quote that. This is not to pass any judgement on the companies involved, but to make for better-informed decision making (sometimes valuations may look mysteriously alluring).

Must Dos, while Posting:

  1. Quote Source(s), and provide Links (use official links as mentioned below)
  2. Prefer official sources such as Stock Exchange Announcements, SEBI Orders over say Newspaper Reports
  3. Corp Filing | Corporate Filing and Dissemination system(maintained by BSE, NSE)
  4. Watchout Investors(maintained by Ministry of Corporate affairs under the Investor Protection Fund)

We can always discuss a particular case and its implications more if anyone wishes. Just make sure you use the “Reply to this” button. While posting for a new company always use the “Quick Reply” button.

Pyramid Saimira Theatres

SEBI order on the matter of investigation into Pyramid Saimira Theatres

In April 2009, SEBI debarred Nirmal Kotecha, a former promoter of Pyramid Saimira Theatre and over 250 entities from dealing in securities. The SEBI investigation shows that Kotecha was the major beneficiary of stock price manipulation that took place in December 2008. The stock price of the company rocketed owing to fake SEBI mandate for open offer at a far higher price than prevailing market price.

Investors can go through the detailed SEBI investigation report to understand the nature of manipulation and tools used

Pyramid Saimira Theatres

SEBI bans Pyramid Saimira for 7 years: company to file appeal

Market regulator Securities and Exchange Board of India (Sebi) today banned Pyramid Saimira Theatre (PSTL) from dealing in stock markets for seven years after it found that the company colluded with seven persons to corner the portion reserved for employees in its initial public offer in 2006.

“PSTL is restrained from dealing in securities in any manner whatsoever or accessing the securities market, directly or indirectly, for a period of seven years,” Sebi said in a statement.

However, the company, when contacted, said it would file an appeal against the Sebi order.

“The order is arbitrary without any basis and it is ridiculous. We will appeal against the order, when we receive a communication from them,” PSTL Managing Director P S Saminathan told PTI.